Ticker Tape Digest

Monday - April 22,  2019

By Leo Fasciocco -- TTD

   Ticker Tape Digest presents its daily stock market report containing stocks to go long as Breakout Trades, Quick Trades, or Bargain Accumulation Trades.

  We also feature stocks under Significant Accumulation that are poised to breakout.

   The TTD report also contains stocks to short as  breakdown plays and as bargain (swing trade) shorts.

  Investors should  tend to try to go with a strategy that fits with the stock market's trend, unless there is a special situation play.

  TTD's Breakout Stocks - Long are most suitable for aggressive investors seeking ideal entry points into leading stocks, especially during bull markets. They can do extremely well in bull markets with gains of as much as several hundred percent.

 These stocks can also do extremely well during strong market rallies, or if they are in a industry group that is performing very well. They tend to have strong earnings outlooks and are near new-52 week, or all-time highs.

  TTD Quick Trade Stocks - Long These are leading issues that have pulled back in recent days, but could move higher soon. They are most suitable for Aggressive Investors willing to trade short term. These stocks will do extremely  well during market advances. They have about 74% win rate. During market rally sequences the win rate is even higher. The return is small 3% to 8% in just a few days.

 TTD's Bargain Buy Trades - Long - Long Term.  These are for conservative bullish Investors These long-term buys are ideally suited for entry into stocks on pull backs within overall up trend. These stocks can give a good return long-term especially during a bull market.

   TTD also presents Stocks To Sell or Sell Short. These issues are suitable for aggressive investors willing to take short positions both as trades or for longer-term plays. These stocks will do very well during bear markets or market pull backs.

  TTD's Bearish breakdown stocks to sell short. These issues have potential to fall sharply. They often show a technical breakdown and also some fundamental business problem such as weak earnings.  

 TTD's multi-media updates include a slide-show that presents charts and analysis at midsession. Some times TTD presents feature analysis on stocks and the market. TTD uses Windows Media Files. (WMV).

 TTD also presents a "Breakout Watch List" that is up dated daily. This list consists of key stocks in position to breakout. A close watch of this list can put you in the stock just as it breaks out. A good idea is to study the list and be ready to move into a stock quickly as it hits its breakpoint.

TTD often suggests using stop buy orders to enter. It is very important to buy a breakout stock as close as possible to the breakpoint. The idea is to get "elbow room" if the stock should follow through to the upside. This is very important in being successful in making big money with breakout stocks.

It is also essential to have a stop loss strategy for all stocks in which positions are taken. Not every stock will work as expected. It is important for investors to "police" their portfolios and avoid getting trapped in any bad positions.

 Quality rating of breakout  Two key factors: 1 - Stock near all-time high in price or near a 52-week high. 2 - earnings growth current year is strong. The ideal play is a stock with an Above Average Quality Rating. The stock is near a new high and will have strong earnings. TTD's other ratings are Average and Below Average.

   TTD also has  special feature sections on  Educational Tips on Investing.

   To email Mr. Leo Fasciocco  leo@tickertapedigest.com.   

   For service, email Beverly Owen owen@tickertapedigest.com. TTD’s Tel: 1-480-926-1680.

Monday - April 22, 2019

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts so far today -  6

Quality of Breakouts -  Average

Stocks Screened - 12,234

Bull side -   Bulls have a small list of breakouts. Very selective.

Stock market  -  Market averages are bullish in all time sectors.

Comment -  TTD sees a lot of action coming with the start of a flood of earnings reports this week.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Earnings beats for Monday - HLX, HSTM, RRC, NVR, CBU and BSRR.

Stock Market Momentum

(Daily is based on a moving average)

Ticker Tape Digest's

Timely Breakout Stocks From Tape Action

(The “breakout List” gives all stocks breaking out of a base of five weeks or more. These stocks have a good chance to trend higher. However, a stop should be used to avoid those that do not work.

They are ranked according to percentage change and classified as leaders or other.

(Trading strategy: One should buy breakout stocks near breakpoint by using market order or stop buy.  They can also be bought soon after a follow through move, sometimes on an intraday pullback. )  

Today's Featured TTD Breakout Stock

Endava Plc. (DAVA) - 34.35, up 4.35 - Breakpoint 30.25

Net To Jump 32% in Fiscal 2019 (June), TTD Targets 41 

  DAVA, based in London, provides a variety of technology services such as software engineering and testing. Annual revenues: $218 million. DAVA's stock surges higher Monday and breaks out from its nine-week flat base.

  The move carries the stock to a new all-time high. That is bullish.

  So far today, DAVA is trading 550,862 shares, triple its average daily volume of 177,000 shares.

 TTD highlighted DAVA as a breakout at our midsession video show on the Web Monday.

  The company recently completed a public offering. DAVA's stock came public back on July 27.

  DAVA's 10-minute chart shows the stock clearing its resistance line in the morning.

  The stock rose to $33.50 late in the morning. It then consolidated through midday.

  Then late in the session it came on again to close near its high for the session. That is bullish.

   Tape Action

  DAVA's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $29.67 in the morning to as high as $34.35 by the close.

  A key bullish trade came in the morning when a block of 16,800 shares crossed the tape at $30.95.

   That was up from the prior block at $29.67 on 2,123 shares.

   Business

  DAVA provides its services in three areas: Digital evolution, agile transformation and automation.

  Its solutions enable clients' businesses to compete and provide a user experience to their users.

The firm offers end-to-end application management services that focus on improvement of systems.

  It operates in Bulgaria, Colombia, Germany, Ireland, Denmark, Moldova, Romania, Netherlands, Serbia, U.S. and U.K.

  Charts

  DAVA's 12-month performance chart shows the stock coming public in July at and trading at $25.

  The stock trended in a range until Monday when it broke out to a new all-time high.

  DAVA's insider activity was not available.

  DAV's long-term chart shows the stock in a consolidation pattern and now emerging. The push to a new high is very bullish.

  DAVA's daily chart shows the stock forming a flat base.

  The stock moved higher in the prior session as it made a stock offering.

  Monday it drives sharply higher clearing its base.

  The stock's CCI momentum indicator is strongly bullish.

Earnings Outlook

  This fiscal year ending in June analysts forecast a 32% jump in net to 94 cents a share from the 71 cents the year before.

  The stock sells with a price earnings ratio of 36. TTD sees that as reasonable.

  Looking out to fiscal 2020 ending in June, analysts predict a 19% rise in net to $1.12 a share from the anticipated 94 cents this fiscal year.

  Currently, four analysts follow the stock.

  Net for the fiscal third quarter ending in March analysts look for net of 22 cents a share. There was no comparison from a year ago available.

  For the fiscal fourth quarter, net is expected to be up 10% to 22 cents a share from 20 cents the year before.   

Strategy Opinion:  TTD is targeting DAVA for a move to $41 off this breakout.

A protective stop can be placed near $31.

Intermediate-Term Rating:  Average.

Suitability:   Aggressive Bulls.

                                 TTD's special research of  Stock's Prior Performance:  

Probability - Breakout Success - Bullish -  DAVA scored one modest gains off its only breakout.

Probability - Earnings Response - Bullish -  DAVA rose 2 times after the past 3 earnings reports when there was a significant change in price.

Probability:  Seasonal Success - Neutral  -  DAVA showed no change in May and June.

           Stock's Prior Performance After A Breakout

(In actual trading, entry and exit points could vary depending on broker execution.

Also, ideal are breakouts to a new 52-week high or better, perhaps all-time highs.)

  Stock's Long-term Chart

 Stock's Performance Chart with Quarterly Earnings Markers vs. S&P 500

Insider Buying in Green  -  Insider Selling in Red

   Stock's Monthly Seasonal Performance Chart - Past 5 Years

Showing % Months UP and % Change

Charts of Selected Breakout Stocks

Ticker Tape Digest’s

Stocks To “Sell or Short”

Ticker Tape Digest’s Daily List of “Stocks To Sell or Sell Short” ranks stocks well timed to be sold immediately based on daily trading. The list can be used as an alert to reduce current long-term positions.

Shorts from tape action so far today -  6

Stocks Screened - 12,234

Long-Term Environment for bears:  Unfavorable.

Bear Side -  Small list of breakdown stocks, but some good looking shorts for aggressive bears.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Sarepta Therapeutics Inc. (SRPT) - 113.79

Loss to expand this year, TTD Sees Decline to 95

  SRPT, based in Cambrdige, Ma., is a biotech firm working on treatments of rare neuromuscular disease. Annual revenues: $301 million. SRPT's stock falls sharply Monday and undercuts key technical support.

  So far today, SRPT is trading 1.2 million shares. Its average daily volume is 1.2 million shares too.

  TTD sees more on the downside.

  SRPT's stock fell in the morning and undercut key technical support.

  The stock touched an intraday low of $112.35 in the early afternoon. The stock then edged slightly higher in the late afternoon.

  However, it remained well below its support line.

  Tape Action

  SRPT's tape action shows the recent block trades.

  One can see the price for the blocks dropping from $116.90 in the prior session to as low as $113.06 Monday.

  A key bearish trade came on Friday when a massive block of 930,430 shares (duplicated) crossed at $116.64.

  That was down from the prior block at $116.90 on 6,856 shares.

   Business  

  SRPT focuses on the discovery and development of ribose nucleic acid (RNA)-targeted therapeutics to treat rare neuromuscular diseases.

Its products are geared for patients with Duchenne muscular dystrophy.

The company has received accelerated approval for its product, EXONDYS 51, indicated to treat DMD in patients who have a confirmed mutation of the DMD gene.

  Earnings:

  This year, analysts are forecast SRPT will show a loss of $4.71 share compared with a loss of $2.14 the year before.

  Looking out to 2020, the Street predicts a loss of $1.60 a share. There are 10 analysts follow the stock.   

Charts:  

  SRPT's daily chart shows the stock forming a head-and-shoulder pattern and then breaking to the downside.

  SRPT's 12-month performance chart shows the stock up 49% versus a 9% gain for the stock market.

  However, the stock has declined around 30% in performance since March.

Strategy Opinion: TTD is targeting SRPT for a decline to $95 within the next few months or sooner. A protective stop buy can be placed near $118.

Suitability:   Aggressive Bears.

  TTD's probability research of Prior Performance:  

Probability - Earnings Response- Bullish - SRPT rose one time after one earnings report.

Probability:  Seasonal Activity - Extremely Bullish. - SRPT averaged a gain of 40.7% in May and a gain of 15.9% in June the past few years.

   Stock's Performance Chart with Quarterly Earnings Markers vs. S&P 500

Insider Buying in Green  - Insider Selling in Red

   TTD takes no responsibility for trading by those using this information. The stocks presented in our report are those we deem the best looking "Day Trades" for the long side. We take no responsibility for the accuracy of this data, although every effort is made to present the information correctly. Copyright Ticker Tape Digest. - 2019

    TTD columnist Leo Fasciocco has covered the stock market for over 30 years. His articles appear in many publications. He has also been  a speaker at the Money Show conferences. He has been on television and radio. He is author of many educational articles about stock investing and the book “Guide To High-Performance Investing.”

   For information to subscribe to the Ticker Tape Digest Services call: Beverly Owen at 1-480-878-8381 or 480-704-3331

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 TTD Pro Report includes a Morning chart slide show of breakout stocks, a Midsession video-audio show with commentary on breakout stocks and shorts and a Final end of day overall report on breakout stocks for the session, short plays and accumulation plays.  There are other features too such as Quick Trades and Long-term Plays.  

TTD Daily Report is $39. It covers a Morning slide show of charts of stocks breaking out and a TTD end of day print report covering breakout stocks and shorts.

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(The information contained has been prepared from data deemed reliable but there is no guarantee of complete accuracy. Ticker Tape Digest Inc. is not affiliated with any broker, dealer or investment advisor. Nothing in this publication constitutes an offer, recommendation or solicitation to buy or sell any securities. Further research is advised. This report is copyrighted and no redistribution is permitted with out permission.)